CALCMONEY // HOME AFFORDABILITY // IA
Find out how much home you can afford in Iowa using local median home prices, current mortgage rates, and IA-specific property tax data.
Open Full Calculator$240,435
$1,616/mo
$268,579
$69,236/yr
| Median Home Price | $240,435 |
| Down Payment (20%) | $48,087 |
| Loan Amount | $192,348 |
| Monthly PI Payment | $1,249 |
| Monthly Property Tax | $266 |
| Monthly Insurance Est. | $100 |
| Total Monthly PITI | $1,616 |
| Required Gross Income (28% rule) | $69,236/yr |
| Max Affordable Price (28% rule) | $268,579 |
$8,415
$2,037/mo
Iowa Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $240,435 | State median |
| Down Payment (20%) | $48,087 | Conventional |
| Monthly PITI (median home) | $1,616 | 6.76% rate |
| Required Income (28% rule) | $69,236 | Annual gross |
| Max Affordable Home | $268,579 | Based on median income |
| FHA Down Payment (3.5%) | $8,415 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Iowa is $240,435, with a current 30-year fixed mortgage rate of 6.76%. A buyer putting 20% down on the median home would carry a loan of $192,348, resulting in a monthly principal and interest payment of $1,249. Once property taxes and insurance are added, total monthly housing costs reach $1,616.
Property taxes in Iowa average 1.33%, near the national average of 1.1%. On the median Iowa home, property taxes add $266/month to total housing costs.
Iowa levies a state income tax of 3.8% flat, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and Iowa state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning Iowa's median income of $75,501/year can afford up to $1,762/month in total housing costs (principal, interest, taxes, and insurance). Based on Iowa's current mortgage rate of 6.76% and property tax rate of 1.33%, that translates to a maximum affordable home price of approximately $268,579 with 20% down on a 30-year loan.
To comfortably afford the median Iowa home priced at $240,435, you need an annual gross income of approximately $69,236. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $1,249, property taxes of $266, and insurance of $100) come to $1,616/month, which should not exceed 28% of your gross monthly income.
Iowa's average property tax rate is 1.33%, which is above the national average of 1.1%. On the median Iowa home of $240,435, that means annual property taxes of $3,198, or $266/month. Because lenders include property taxes in your debt-to-income calculation, Iowa's property taxes have a relatively modest impact on overall affordability.
The minimum down payment depends on your loan type. For an FHA loan, you can put down as little as 3.5% — on the median Iowa home of $240,435, that is $8,415. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($48,087 on the median Iowa home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no Iowa-specific minimum down payment requirements beyond federal guidelines.